CHARGES INVOLVED IN A TWO-WHEELER LOAN
The list of costs that are involved in a two-wheeler loan are as under: -
- Loan Processing Fee: The maximum amount of a two-wheeler loan processing fee is a maximum of 3% of the loan amount.
- Documentation Charges: The maximum amount of the documentation charges is a maximum of 3% of the loan amount.
- Pre-Payment Charges: Within 4-6 months from the first EMI is 10% of the principal amount. Within 7-12 months from the first EMI is 6% of the principal withstanding. 5% of the principal amount within 13-24 months following the first EMIs. Then, after 24 months from the first EMI, it is 3% of the principal amount. The prepayment for the loan is not allowed within the three months of the repayment of the EMI.
- Overdue EMI Interest: It is 2.5% per month on unpaid instalments.
- Stamp Duty: The value of the stamp duty is as actual as levied by the respective State Governments.
- Cheque Bounce or the EMI Return Charges: The cheque bounce or the EMI return charges are about Rs. 500/-.
- Legal, Incidental and Repossession Charges: Incidental charges are the expenses or the charges that are not specified or budgeted, but the bank incurs these charges on behalf of the customer.
- Duplicate NOC: The value of the duplicate NOC is Rs. 500/- per request.
- CIBIL Charges: These are around Rs. 50/- per request.
- PDD Charges: The PDD Charges are up to Rs. 450/-.
- cheque /ECS Swapping charges: - These charges are around Rs. 500/-.
- Amortisation Schedule Charges: These charges are around Rs. 200/-.
HOW TO GET A TWO-WHEELER LOAN? Here are a few steps that will help you to get a two-wheeler loan: -
- Verify your creditworthiness: - When you apply for any loan, the bank you apply to run a check on your CIBIL score. This is done to verify your creditworthiness. If you have a good CIBIL score, it will mean that you have the ability to repay all your debts on time. It increases the chance of you availing of the loan. Therefore, before applying for a two-wheeler loan, you should check that you have an excellent CIBIL score. It has to be around 700.
- Set your monthly budget: - It is the most important thing you need to take care of. Before making any purchase or taking any loan, you should know your budget. You should apply for a loan that has an affordable EMI. You don't want that two-wheeler you buy to be a financial burden on your shoulders. Therefore, to ensure that, you should make a budget and stick to the requirements.
- Compare the options: - There are many banks available that provide different loans with different interest rates. So, if you are planning to apply for a loan, you should compare different loans available, at least five, their interest rates, the tenure of the repayment and other benefits, and then should select the one which is the best for you.
- Select a trustworthy lender: - As a lender or a bank checks your CIBIL score and creditworthiness for his satisfaction, in the same way, you should also check the creditworthiness of the lender. The loan providers who are well established and clear have pre-decided terms and conditions.
- Apply online or offline: - It is your choice to apply for a two-wheeler loan online or offline. Some of the banks provide online and offline facilities, while some don't know to check accordingly. If the bank you want to apply to does not have an online option, you can visit the nearest branch of that bank and apply for the loan. If you want to apply online for an HDFC BANK two wheeler loan, you can visit their official website.
CONCLUSION: - A two-wheeler loan can help someone who is not financially stable and wants to buy a two-wheeler. Even if you have the desired amount of money, you should still go for a two-wheeler loan, as the amount of the EMIs is not that much, and you can easily manage it with the other expenses.
Also read this: Two-Wheeler Loan In Pandemic
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